Professional Documents
Culture Documents
CHAPTER 1
INTRODUCTION
Page 1
This organizational study has been conducted with the intention of understanding the
structure of the organization and the functions carried out by its departments to get a
holistic view, at the Hindustan Insecticides Limited, Udyogamandal, Eloor, a chemical
manufacturing company.
With growing world population, there is an increasing need for larger rate of production
of food-grain, and hence a need for quality pest control measures as well. Thus, the
industry promises bright prospects in markets world-wide.
HIL, a public sector enterprise, was incorporated in March 1954 under the first five
year plan, for the National Malaria Eradication Programme. Udyogamandal unit was
established in 1958, and over the years, the company has grown to produce a large
variety of quality pesticides, insecticides and Weedecides for farmers world-wide.
The Udyogamandal unit is headed by a General Manager, under whom the departments
of Personnel and Administration, Finance, Research and Development, Production,
Engineering, Commercial, Quality Control and Safety functions in a well structured
manner.
Page 2
1.2 OBJECTIVES
1. To analyze the industry and company profile with an overview of the strengths,
weaknesses, opportunities and threats of the company.
2. To examine the organizational structure of the company and its departments
3. To understand the process involved in the organization
4. To identify internal and external factors that affect strength, weaknesses,
opportunities and threats.
5. To understand how information is used at various levels of the organization for
decision making.
Page 3
This study was conducted for a period of one month (may2014).This organizational study
comprises the entire functioning of the organization which includes the structure, function
and process of various departments and their interdependence
Secondary sources
secondary source of information are collected from internal projects annual reports
administrative report and web site
.
PERIOD OF STUDY
Period of the study is from 2nd may 2015 to 30th may 2015
Page 4
1. CHAPTER 1: INTRODUCTION
2. CHAPTER 2: REVIEW OF RELATED LITERATURE
3. CHAPTER 3: DESIGN OF STUDY
4. CHAPTER 4: INDUSTRY PROFILE
5. CHAPTER 5: COMPANY PROFIL
6. CHAPTER 6: ORGANISATIONAL STRUCTURE
7. CHAPTER 7: DEPARTMENTAL PROFILE
8. CHAPTER 8: SWOT ANALYSIS
9. CHAPTER 9: FINDINGS, SUGGESTIONS AND CONCLUSION
Page 5
CHAPTER 2
REVIEW OF RELATED LITERATURE
Page 6
2.1 Organization
Organization is a systematic arrangement of people to accomplish some specific purpose.
Every organization is composed of three elements i.e. people, goals and
system. Each
organization has a distinct purpose. This purpose is expressed as goals generally. Each
organization is composed of people. Every organization has a systematic structure that
defines the limit of each member. Some members are managers and some are operatives.
A social unit of people that is structured & managed to meet a need or pursue collective
goals.
All
organizations
have
management
structure
that
determines relationships between the different activities and the members, and subdivides
and assigns roles, responsibilities, and authority to carry out different tasks. Organizations
are open systems--they affect and are affected by their environment.
Basically, nature of organization can be viewed in two ways:
Organization as a process
Organization as a structure or framework of relationship
Organization as a Process
As a process, organization is an executive function. It is the process of determining,
arranging, grouping &assigning the activities to be performed for the attainment of
objectives. It becomes a managerial function involving. The following objectives:
I.
II.
Division of work.
III.
IV.
V.
VI.
Delegating authority
Coordinating the efforts of different persons & groups.
Page 7
Organization as a Structure
The term organization structure refers a machine of management, in its achievement
of the ends, determined by its administration. In a short organization structure refers a welldefined system which people require for the execution of their work responsibilities. It
helps then to relate to each other, coordinate their activities and achieve organizational goal
or targets. It minimizes confusion, suitable work behavior& maximizes effectiveness.
Organizing is treated as one of the important function in process.
a) Line Organization
It is the military type organization, where each department is generally a complete
self-sustaining unit; each department is under the control of department head who is
completely responsible for organization the department. All department heads are
responsible to the general manager; he is responsible to the managing director.
Page 8
c) Functional Organization
Here employees are grouped together on the basis of the primary skill need to do
their job. Those structures offer the organization two way advantages.
Encourage technical expertise.
Reduce duplication of activities.
The main elements that determine to make on organization are people, tasks, structure &
technology where in the organization takes in some of there as inputs to derive the desired
outputs. While doing so, the following management process work independently to run a
successful organization i.e.
Planning
Organizing
Staffing
Directing
Controlling
Page 9
Also the management though out have changed &evolved from the pre-scientific
management period to early management approach &to modern management. There are six
elements those managers to address when they design their organization structure.
Work Specialization
Departmentalization
Chain of command
Centralization
Formalization &Decentralization
Page 10
CHAPTER 3
Page 11
Page 12
Page 13
www.hil.gov.in
3. www.Chemicals.com
4. www.researchandmarket.com
5. www.chemfabalkalis.com
2.
Annual Report
Page 14
CHAPTER 4
INDUSTRIAL PROFILE
Page 15
The Indian chemical industry is one of the oldest domestic industries in India,
Contributing significantly to both industrial and economic growth of country since it
achieved
Independence in 1947.the chemical industry currently produces nearly 70000
commercial products ranging from cosmetics and toiletries, to plastics and pesticides.
The wide and diverse spectrum of Product can be broken down into a number of
categories, including inorganic and organic chemicals, drugs and pharmaceuticals, dyes
and pigments, fine and specialty chemicals ,Pesticides and Agrochemicals, and
fertilizers
With a special focus on modernization, the Indian government takes an active role in
Promoting and advancing the domestic chemical industry. The Department of
chemicals And petrochemicals,which has been part of ministry of chemicals and
fertilizers since 1991,Is responsible for policy, planning, development and regulation of
industry. A number of Government owned and private sector companies produce an
array of dual-use chemicals that are potential chemical weapons precursors and
intermediates. Whereas in the private sector, numerous organizations,
Page 16
table 4.1
Types of pesticides
mi million dollars)
Herbicides
14118
44%
Insecticides
8,763
28%
Fungicides
6027
19%
other
2848
9%
Total
31756
100%
Page 17
Agriculture is the keystone of the Indian economy. Ensuring food security for more
than1 billion Indian populations with diminishing cultivable land resource is a
herculean task. This necessitates use of high yielding variety of seeds, balanced use of
fertilizers, judicious use of quality pesticides along with education to farmers and the
use of modern farming techniques. It is estimated that India approximately loses 18
percent of the crop yield valued at Rs.900 billion due to pest attack each year. The use
of pesticides helps to reduce the crop losses, provide economic benefits to farmers
reduce soil erosion and helped in ensuring food safety & security for the nation.
India is the largest manufacturer of pesticides among the south Asian and South
African
Countries. Chemical pesticide industry in India at present comprises of large domestic
players, large multi nationals and the small scale sector.
Indias population at present is over a billion and it is expected to rise to 1.5 billion by
year 2040.Presently, the annual food grain production is on an average of 210 million
tons, but the requirement will be 300 to 350 million tons by year 2040. Hence, food
grain production needs to increase to around 1.5% per annum.
India produces 16% of the worlds food grain but uses less than 2% pesticides used
worldwide. Hence the industry still has a good potential of growth. In India, higher
rates of food grain production can be achieved by enhanced and proper use of
irrigation, high yielding seeds, balanced use of fertilizers, high quality plant protection,
education to farmers etc.
Page 18
The Indian companies have developed process technologies for more than 30
pesticides, and pesticides exports from India are steadily on rise. India exports
pesticides for approximately Rs.2000 cores every year. This has increased by 15% in
the last three years and the Indian pesticide industry has built good reputation as a
reliable supplier.
Insecticides always dominated the Indian market as well. However, in the past few
years the share of herbicides and fungicides is steadily increasing, and the overall
consumption of chemical pesticide is declining.
Still, according to the report of standing committee of petroleum & chemicals, the
losses from pests, insects and diseases amounted to approximately 90,000 crores per
annum. This situation calls for taking enhanced and effective steps for use of
pesticides to save crop losses and increase food grain production. Industry and
government should take special initiatives to popularize the use of insecticides,
herbicides and fungicides to minimize the crop loss.
Page 19
The Indian pesticide industry has advanced significantly in recent years, producing
more than 1000 tons of pesticides annually. India is the 13 th largest exporter of
pesticides and disinfectants In the world and the terms of volume is the 12 th largest
producer of chemicals. The Indian agrochemical, petrochemical are some of the
largest growing sector in the economy. With an estimate worth of $28 billon,it
accounts for 12.5 percent of he countrys totalIndustrial production and 16.2 percent
of the total export from Indian manufacturing sector
Page 20
CHAPTER 5
COMPANY PROFILE
Page 21
Even though
Udyogamandal division of HIL is governed by the Delhi office, they are allowed to
make certain decisions regarding purchase, production and distribution depending
upon demand.
Page 22
The company had one manufacturing unit at Delhi which was closed on December 1st
1966 along with 167 other industries for environmental reasons as per the order of the
honorable Supreme Court. HIL has started its pesticides formulations planned at
Bathinda on 5th April 2003
Page 23
5.3 History:
HIL, a Govt. of India Enterprise, under the Dept. of Chemicals & Petrochemicals,
Ministry of Chemicals & Fertilizers, Govt. of India, was incorporated in March,
1954 for supplying DDT for National Malaria Eradication Programme launched by
the Govt. of India. Subsequently, the company diversified into agro pesticides to
meet the requirements of agriculture sector and has grown manifold with a turnover
of Rs. 2006.00 million rupees in 2009-10. Company has also entered into the field
of safe and ecofriendly botanical and bio-pesticides for public health and plant
protection. It has also started marketing of seeds in the northern, central and
western parts of the country. The product range includes Insecticides, Herbicides,
Weedecides, and Fungicides etc. It has a pest control division catering to industry
houses and offices.
With the renewed focus on DDT, as a cost effective and efficient tool to fight
Malaria, the company has ventured into export of DDT 75% WDP mainly to
African countries. With US re-starting aid for procurement of DDT and WHO
strongly endorsing usage of DDT for indoor spraying, the company sees a great
scope in emerging as the main DDT supplier to the world as HIL is the world's
largest DDT producer. Moreover, the company has more than 50 years of
experience and expertise in the manufacture of DDT.
The company has been exporting its agro products to a number of countries such
as Netherland, UK, Jamaica, UAE, Manila, S.Korea, Belgium, Guatemala, France,
Germany, Argentina, Ethiopia, Egypt, Spain, etc. for the last more than a decade
and its products are well-accepted in the world market. Company has a wide
network of marketing throughout the country through its six Regional Sales Offices
and good number of dealers.
Page 24
The company has three manufacturing units located at Udyogamandal, near Kochi
(Southern India), Rasayani near Mumbai (Western India) and Bathinda in Punjab
(Northern India). The company also has a Research & Development complex including
an experimental farm at Gurgaon in Haryana.
5.4 Vision:
Mission:
To provide quality products through clean and safe technology which would enhance
agricultural productivity and promote Public Health along with increasing product
range, exports, efficiency and productivity of the Company.
RESEARCH AND DEVELOPMENT
Page 25
Page 26
Common name
: Dicofol
Empirical formula
: C14H9C15O
Form
Users
Production capacity
200 kg MS Drum
Page 27
MANCOZEB
Fungicide
Commo Name
: Mancozeb
Empirical formula
: (C4H6MnN2S4 )Zny
From
Uses
production capacity
: 1000MT/ Annum
diamine, manganese and zinc salts. Initially the plant capacity is 1000 TPA for Mancozeb
(technical) and 1800 TPA for formulation with provision for expansion at a later stage.
The plant is based on the in house technology of HIL by the Research and Development
division.
Page 28
DDT 75 WP
Public health insecticide
Common Name
Empirical formula
:C14H9C15
Form
:waxy solid
Uses
vector
In public helth
Production capacity
:6344MT/Annum
The raw materials used for its production are benzene, chlorine, specially denatured ethyl
alcohol and sodium hydroxide.
The steps involved in the manufacturing process of DDT are:
a) Preparation of mancozeb
b) Preparation of chloral alcoholate
c) Preparation of chloral from chloral alcoholate
d) Condensation of mancozeb and chloral
e) Washing, distillation of mancozeb and casting DDT.
Page 29
DDT is produced by the condensation of monochloro benzene (obtained from chlorine and
benzene) with chloral (obtained from chlorine and alcohol) in the presence of oleum.
The reactions are complex and the chemical used are most corrosive ones. Therefore the
manufacturing processes are highly sophisticated and equipments used are most modern
and are of special material construction.
Technical DDT is further processed into water dispersible powder (WP) by particle size
reduction after mixing with inert like china clay and wetting and dispersing agents. It is this
formulation that is used in the malaria eradication programme of NMEP.
The technical plant in Udyogamandal unit has a capacity of 1344 TPA of DDT (technical)
and 2688 TPA for DDT WDT. DDT is not used in agriculture and is used extensively for
the control of malaria and kala azar diseases. DDT is marketed in the brand name HILDIT.
DDT is now only sold for controlling vector born diseases
Page 30
CHAPTER 6
ORGANISATIONAL STRUCTURE
Page 31
ORGANISATIONAL STRUCTURE
Organizational structure is a system used to define a hierarchy within an
organization. It identifies each jobs, its function and where it reports to within the
organization. This structure is developed to establish how an organization operates and an
organization in obtaining its goals to allow for future growth.
Explicit and implicit institutional rules and policies designed to provide a structure
where various work roles and coordinated. Organizational structure also determines how
information flows from level to level within the company. In a centralized structure,
decision flow from top down. In a decentralized structure, the decision are made at various
different level.
The organization chart is a diagram showing graphically the relation of one official
to another, or others, of a company. It is also used to show the relation of one department to
another, or others, or of one function of an organization to another, or others. This chart is
valuable in that it enables one to visualize a complete organization, by means of the picture
it presents. A company's organizational chart typically illustrates relations between people
within an organization. Such relations might include managers to sub-workers, directors to
managing directors, chief executive officer to various departments, and so forth. When an
organization chart grows too large it can be split into smaller charts for separate
departments within the organization. An organizational structure is the way that a business
is set up to provide a hierarchy and a specified line of reporting. The type of structure that
is used varies from one company to another, but its main purpose is internal organization.
The goal is to increase the communication and delegate authority on a level that is suitable
for the size and needs of the company.
Page 32
HIL being a government company has a well organized management structure. The top
level managerial personnel are well qualified for the effective management of the day to
day activities that taken place in this large organization. The administrative level of the
company is made clear in the organization chart.
The top most authority is vested in the chairman who is also managing director of the
company. under him there are three directors and chief general manager, the chief general
manager is in charge of the entire attires of the organization.
HIL has one of the oldest types of organizational structure. Its structure is of line or
military type. This type of organization is also known as scalar organization. In line
organization, each department is generally a complete self-sustaining unit. Each
department is under the control of the department head, who is completely responsible for
organizing the department. Above all the department heads, there is a Unit Head to whom
all the department heads are responsible. The in turn Unit Head is responsible to the board
of directors.
HIL is an organization with a narrow span. The members or subordinates are usually 4-8 at
the upper level of the organization and 8-15 or more at the lower levels. The advantage of
narrow span of control is close supervision, close control and fast communication between
subordinates and superiors.
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Page 34
CHAPTER 7
DEPARTMENTAL PROFILE
Page 35
Production
Finance
Human resource
1.
2.
3.
Commercial Department
4.
Production Department
5.
Engineering Department
6.
7.
8.
Page 36
Page 37
PEM
DMP
WO
AO(W)
APO
ADO
AHO
Page 38
The Personnel Department is headed the Personnel Manager. HIL draws its strength from
its human resources, and hence the company gives utmost priority for the development
and upgrading of its skilled manpower. It has made numerous efforts and thrust towards
optimum utilization of manpower to built up a healthy work culture and to achieve higher
goals of productivity as well to meet the challenges of the future. The Udyogamandal unit
has a strength of 423 employees out of which 73 employees come under the supervisory/
managerial cadre and 350 under the workmen category under the Industrial Disputes Act,
1947.
The Personnel Department of HIL deals with the manpower requirements of various
departments. All the activities like recruitment, training and development programmes,
performance evaluation, salary fixation, transfer and promotion, welfare activities and
industrial relations are done by the personnel department. They conduct induction
program for the new entrants. The department also plans the various in house training
programs for the laborers. They also deal with the planning of various incentives programs
to be given to the workers. The department deals with issues regarding separation of work
force from the firm.
Some of the other programs done by this department are compensation program,
placements, performance appraisal and record keeping. HIL draws its strength from its
personnel department. Hence the company gives utmost priority to the development and
updating of its skilled manpower. The company regularly conducts training programs for
the workers as well as the officers.
The personnel department also has a welfare officer who is responsible for meeting the
employees social benefits and the general administration department meets requirements
of office staff, stationeries and other necessities. The time officer maintains the
employees attendance and leave details.
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Induction
Upon selection, each employee is made to visit every functional department of the unit and
gets acquainted with the kind of work and people, for 3 to 7 days. The employee then
submits a report as to what he learnt to the personnel department. He is then placed in the
relevant department.
Performance appraisal
Every employee is selected on probationary basis for 6 months. On the satisfactory end of
six months he is made permanent. Continuous performance appraisal of employee is done
each six months, quarterly and annually by the head of the department. The criteria for
appraisal of workers are:
a) Knowledge of work
b) Job performance and application
c) Attendance and punctuality
d) Behavior and attitude towards colleagues and supervisors
e) Dependability and integrity etc
Employees with unsatisfactory appraisals are sent intimation for relevant training
programme, explaining the scope for improvement.
Workers are given semi statutory training according to schedules. In terms of fire, safety
and hazardous waste management, in house training session with external faculties are
conducted which are followed by appraisals from the training officer as well as from the
management.
Development programs for officers are conducted during which they are given training
and classes on supervision, managerial procedures, attitudinal changes, getting along with
employees etc.
Page 40
relations
The company maintains healthy and harmonious relations industrial relations. Industrial
relations refer to the relationship between employees and employers in the workplace,
usually concerning matters of work, rights and responsibilities of either side.
HIL has 3 trade unions:
a) HILEU (CITU)
b) HILWU (INTUC)
c) HILEO (BMS)
Grievance handling
Page 41
through deputy personnel manager and a copy is forwarded to the convener of the upper
level committee.
In case the employee finds the decision made by the lower level committee to be
unsatisfactory, he can present his grievance along with the decision made by the lower
level committee to the upper level committee through the Deputy General Manager (P &
M). The decision made is communicated by issuing orders.
The employee can also approach the MD to through proper channels to present the
grievances. HIL, Udyogamandal unit also has a practice of employees venting off their
feelings before the GM every Friday.
WELFARE MEASURES FOR EMPLOYEES:
Medical
Company allows medical reimbursements to the employees and their dependents for
treatment in approved hospitals in Cochin including allopathic, ayurvedic and homeopathic
medical institutions. After verifying the emergency, medical bills from unapproved
hospitals are also considered for reimbursement, though with a certain percentage of
deduction from the bill amount.
HIL maintains a dispensary with a registered medical practitioner and full time nursing
staff with all first aid facilities. First aid boxes are installed at various points within the
plant.
Health benefits
Annual medical checkup including blood test, ECG etc are conducted for the workers as
well as for the managerial and supervisory staff with the help of an approved medical
institution.
Page 42
All employees are covered under the group personal accident insurance scheme of the
company, according to their eligibility.
Maternity benefit
Milk supply
All the employees are supplied with litres of milk every day.
All categories of employees are issued uniforms, safety shoes and umbrella
every year.
Certain workmen are issued with mull cloth, washing soap and oil every month
The employees are eligible for bus subsidy of actual bus fare to the nearest bus
Allowances are given to employees using their own conveyance for official purposes and
are as follows:
Cost of 15 litres petrol to employees under industrial disputes act and cost of 37 litres
petrol to managerial and supervisory staff.
Service award
Employees under ID act who have completed 18 years service are awarded an HMT watch
costing not more than Rs 650 with 50% increment.
Page 43
Educational benefits
Unit level classes as part of workers education scheme are conducted periodically
under worker teachers with facility of 10 days study tour to other institutions.
HIL township
Company maintains a well structured township with 81 quarters for employees of various
categories
Recreation
HIL club provides entertainment facilities to our employees and their family members. A
volleyball court and a childrens park are also maintained by the HIL club.
In the event of death of an employee while in service, one of his dependent (wife or son/
daughter aged above 18 years) is employed in service.
Special leave and TA are allowed to employees who attain competitive success in sports
and games in state/ national levels.
Employees are allowed leave travel concession to anywhere in India once in 4 years and
home tour once in 2 years as per rules. Flexibility to encash the leave travel concession
instead is also allowed.
Canteen
Company maintains a canteen with arrangement of meals, tea and snacks to about 550
employees per day including contract employees. The canteen management committee
includes six persons, including three representatives from workers and 3 from managerial
and supervisory staff for controlling the canteen functions.
Page 44
Advances
Employees are eligible for getting the following advances according to their seniority and
eligibility.
- House building advance: up to 40 lakhs
- Vehicle advance to M&S staff up to Rs.80000.
- Loan for TV/fridge/scooter ( to employees under ID act) Rs 35000 each to 20 employees
Page 45
Page 46
Page 47
D) Personnel officer
1) General administration and coordination of personnel section on the advice of deputy
general manager( P&A)
2) Supervision of fixation of wages, annual increment, stagnation of employee
3) Superintending the activities of general service section.
E) Superintendent (welfare)
1) general superintendence of taking and updating of licenses/ remitting taxes and other
statutory payments as required by law
2) immediate controller of company
Page 48
FINANCE DEPARTMENT
Page 49
Finance is the life blood of every organization. For the smooth running of an organization,
finance is needed. Finance refers to the application of skills and care in the use of money.
Within the present basis of society it is impossible to escape from finance in one form or
another. The company appoint internal audit for inspecting and checking of books of
accounts for reliability and accuracy.
Finance function includes the following:
Page 50
FINANCE MANAGER
ACCOUT
OFFICER(COST)
ACCOUT OFFICER
FINANCE
ASSISTANT AO
ASSISTANT AO
ASSISTANT AO
ACCOUNTANT
ACCOUNTANT
ACCOUNTANT
Page 51
The Finance Department is headed by the Finance Manager. He is assisted by the Assistant
Finance Manager, followed by the accounting officer. The accounts officer is again
followed by the assistant accounts officers, accountants and their assistants.
The finance department is divided into 2 sections, namely:
Finance
Costing
Costing section looks after costing records and prepares a cost sheet for each of the enquiry
and order. It also prepares MIS report and budgeting.
The finance section is again divided into 3 sub sections. They are:
Payroll
All sub sections are under the supervision of separate supervisors who are assisted by their
clerks (assistants).
The functions of each sub section of finance section are:
Assessing the cost of repairs to plant and machinery ensure all the assets of the company
are insured. Insured assets include stock, plant and materials in transit.
All the employees of the company except apprentices are insured through group personnel
accident insurance scheme.
The function of the payroll section is to deal with
punching data
Page 52
The payroll system tracks the attendance of each employee, calculates the pay of the
employee as per the attendance, and makes deductions like PF, loans, insurance, leave
balance tracking, bonus and other calculations. It also generates statutory reports like PF
statements. The system tracks shift arrangements of employees. Pay is calculated based on
the attendance of the employee. System deducts all deductions from the total earnings. A
pay slip is printed automatically.
The company classifies employees into 3 different categories:
Permanent
Casual
Apprentices
Canteen
Uniform
Shoes
Page 53
Internal audit
Internal audit is done at regular intervals, i.e quarterly by the internal auditor appointed
locally by the Board Of Directors of the company.
Finance Department of the company does the following activities and functions:
1) Consolidating each department budgets and getting the approval of chairman.
2) Preparing the profit and loss account and balance sheet to know the financial
performance of the company.
3) Preparation of plan wise budget
4) Co-ordination with personnel department in functions like disbursement of salary
advance and allowance
5) The other activities of the finance department include preparation of accounts and
making suppliers payments. Company is using its own developed accounting software
based on FoxPro and visual basics.
Page 54
i) Payment and maintenance of records connected with work contracts taxes and income
tax in respect of contractors.
j) Tax audit, return in respect of hypothecation to be submitted to head office.
k) Obtaining confirmation of balances from sundry creditors, sundry debtors and security
deposit
3) SUPERINTENDENT OF PAYROLL SECTION
4) ACCOUNTS OFFICER
Page 55
COMMERCIAL DEPARTMENT
Page 56
7.3
COMMERCIAL DEPARTMENT
DGM
DCM/DCM
SO
ASO
AO(P)
SR.ST
NO
AO(sto
re)
Assit
(s)
Assistant
SR.asst
Sr.assit
Store
keeper
helper
Page 57
COMMERCIAL DEPARTMENT
A Deputy General Manager (DGM) heads this department. This department is divided into
3 sections namely:
a) Purchase
b) Sales
c) General stores.
The manager is the coordinator of the Production and Commercial department. Under him
there is one Commercial Manager. He is the chief of the Commercial Department. Under
the Commercial Manager comes the Deputy Commercial Manager who looks after mainly
offices of purchase section. Under him there are 2 officers, sales officer and material
officer.
PURCHASE DEPARTMENT
Deputy Commercial Manager is the head of this section. Under him, there are 2
superintendents who supervise the activities done by the clerical staff.
Purchase orders are classified into 2. They are:
a) Order below Rs 2 lakhs and
b) Order of and above Rs 2 lakhs
For the purpose of order below 2 lakhs they keep a list of suppliers called vendors list.
From vendors list they choose the appropriate supplier and sends enquiry notes to them. If
they reply positively, i.e. if they have stock of materials which the company intends to
purchase, then the company can send a purchase request to them.
For order of and above Rs 2 lakhs, the company will put tender in newspaper. Filled up
tender forms and earnest money will be received up to a specific date. The tender will be
opened at a particular date and the supplier who is willing to give the material at the lowest
cost will get the purchase request. A separate file is kept against each purchase request.
The supplier who is willing to supply the materials at the lowest cost will get the purchase
order.
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This is the second step in a purchase deal. Payment is done in any one of the following 3
ways:
a) At thirty days credit
b) Documents through bank
c) Advance against delivery
After the materials are delivered to the stores by the supplier, the store issues a material
receiving note and passes it to the purchase section. After receiving the MR note, file
related to that order will be closed. After the delivery the stores will inspect the material
and in case of any damages it takes necessary steps to get back the money.
The major items purchased by the company are:
Alcohol, buten dio, chloral, caustic soda lye, calcium tetra chloride, china clay, carbon terla
chloride, castic soda sulphide, carbon di sulphide, chlor pyieopostech, calcium lingo,
suphonate, eplichlora hydrine, diamine, expioxidisded, soyoben oil, hexa chlora, cyclo
pentad lime,hydrated calcium sala cate, hexamine, manganese sulphate, mono chloro
benzene, oleum soda ash, sodium lingo sulphonate, thionye chloride, zinc chloride, zinc
sulphate.
SALES AND MARKETING DEPARTMENT
Sales and Marketing Department is another section of the commercial department. This
department functions as per the instructions from the head office. The sales officer heads
the section and the superintendent of sales section, clerks and apprentices assist them in
rendering their duties.
The marketing of the finished products is planned and coordinated by the corporate office
at Delhi. After canvassing the order, the largest order is finalized for each year. The
corporate sales office headed by director (marketing) issues dispatch instructions to the
manufacturing units. On that basis each manufacturing unit schedules its production plan.
All the activities relating to marketing of the product like getting export orders and sales
promotion is done by the head office at New Delhi. Since the use of DDT for agricultural
purpose is banned, now only the orders from the director of health service for malaria
eradication programme is met (NMEP).
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Next action is taken by the purchase section based on the PR forwarded to the purchase
order to selected suppliers who supply the material. The marketing division of the company
is promoting the products of International Panacea Ltd, New Delhi.
The company added several innovative, imported and locally manufactured pesticides to its
portfolio. Now the company provides a complete range of products to the farmers.
The company has a central marketing set up controlled and coordinated by the head office
with regional sales office at Delhi, Hyderabad, Kolkata, Nagpur, Ahmadabad, Coimbatore
and Cochin. For Kerala region the branch office is at Cochin. Also the company has
appointed nearly 50 dealers in Kerala state.
The Udyogamandal sales section mainly does the dispatch service. The procedure is as
follows:
As per the dispatch advice, sales section plans schedule dispatch of finished products and
miscellaneous items. Disposal of by products, miscellaneous and scrap items also is a
function assigned to the sales section. For this purpose the section has to contact different
manufacturing agencies, traders and dealers. The by products are a) waste recovered
sulphuric acid from DDT plant. Miscellaneous items include scrap, damaged cartons, waste
paper etc.
On the basis of availability of stock of finished products ready for dispatch, sales section
instructs empanelled transport to place truck for loading of the material to each destination
for the entry of the truck inside the premises of the factory. Entry permission is issued by
the security at the main gate. The security officer, after checking the trucks and receiving
the tool list permits the trucks inside. Thereafter the truck is weighed and the type weight is
recorded. The truck is then accompanied by a security and parked at the concerned ramp.
Simultaneously, instructions are given to the production department and security showing
the packaging details and the products. The loading crews are also given instruction. After
loading, the production supervisor issues detailed list of products loaded. Then the truck is
again weighed. On the basis of weigh bridge report signed by security, documents are
prepared.
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Firstly, material gate pass is prepared. If the transaction is interstate, form 26 (central sales
tax delivery note) is sent along with the consignment. If the material is excisable, invoice
cum excise gate pass is also raised. A copy for transporter and an extra copy is also sent
along with the consignment. As per the customs and central excise rule, excisable materials
should not be cleared without debiting central excise duty. Central excise invoice shows the
basic price of material, total cost of consignment and sales tax. The document is a proof for
the debit of central excise duty to excise department.
If the transaction is inter unit transfer (stock transfer), then after preparing the above
mentioned documents, debit note is raised and sent to the concerned regional office. If it is
a sales consignment, commercial invoice is raised and sent to the concerned parties.
Immediately after the consignment, the details of dispatch are communicated to the third
party. Information is also sent to the corporate office. Every transaction is recorded on
daily,
monthly and yearly basis and these reports are submitted to the general manager every day
and then communicated to the head office.
GENERAL STORES
The General Stores are managed by the material officer, senior store keeper, junior
assistant and helpers assist him in rendering his duties. The main functions of the general
stores are:
a) Receipt and issue of material
b) Inventory control
In receipt of material, first purchase request is raised. This may be done in 2 days.
1) Upon the request of the user, stores raise PR. This is because the user can only access
the requirement of some average moving material used by them. But the PR will be located
through stores only.
2) Stores raise PR for maximum moving item. In the case of such items, the annual
requirements per year is forecasted based on production forecast and communicated to the
stores at the beginning of the year.
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3) Material officer is the immediate supervisor of the general stores. He reports to the
commercial manager. Material officer is the custodian of material received in the company
for various purposes, its inspection either by himself or by concerned officers of the user
B) PURCHASE SUPERINTENDENT
1) The Purchase superintendent is in charge of the section and he is assisted by different
assistants.
2) He is to allocate work to his assistants
3) He has to prepare the tender document for different purchase incorporating the technical
requirements finalized by the user department.
4) Scrutinizing the tender prepared by the assistants, approving and forwarding to deputy
commercial manager for final approval
5) Checks each and every file forwarded to the deputy commercial manager so that
proposals are in line with the laid down conditions of purchase by the company and also to
ascertain that the proposals are in line with the CVC guidelines
6) Follows up with the assistants for speedy implementation of different activities
7) He is the custodian of the registers and records maintained in the purchase section for
different activities
8) Follows up with different suppliers so that the ordered materials are supplied in time
specified in relevant orders
9) He is to ascertain the commercial condition laid down for different purchases and
contracts in the section
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PRODUCTION DEPARTMENT
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General manager
Dy . General manager
Production manager
Dy.Te
ch.
Mgr
Dy.prdctn
mgr
Dy.prdctn
Mgr
Plant in
charge
Dy.prdctn
mnger
Plant in
charge
Plant in
charge
Shift
production
supervisor
Shift
production
supervisor
Plant in
charge
Shift
production
supervisor
Shift
production
supervisor
Dy.prdctn
mnger
Operators& helpers
Operators& helpers
Operators& helpers
Operators& helpers
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PRODUCTION DEPARTMENT
This department is headed by General Manager under him comes the Production Manager.
There are 3 deputy production managers. All the functions are related to the production
plan of the company. The production plans for each product is different.
The production is concerned with creation of a product or service required to satisfy
customer needs and wants. In any business that supplies a product or service, its quite
obvious that the activities of production system must be closely related to the customers
demand as reflected in the continuous flow orders.
The main function of Production Department is to produce the finished products to meet
the sales orders. The department also takes care to provide training to operators. It is also
conscious of pollution control and environment protection. A centralized effluent
treatment plant in which the entire quantities of liquid effluent generated from all plants
are treated and discharged as per standards.
Effluent treatment system was put up based on the process designed by National
Environment Engineering Research Institute (NEERI). The equipment design engineering
and erection was done by M/s Richardson and Cruddas (1972)Ltd., a Government of India
enterprise. HIL has periodically incorporated several additions and modifications to the
system. Constant vigil is exercised in ensuring the quality of the treated effluents
discharged by analyzing the samples. HIL has its own quality control laboratory which is
approved by the state pollution control board. A portion of the treated water is reused and
balance quantity only is discharged.
The plant in charge supervises the plant entrusted to him and reports to the deputy
production manager of the plant who in turn reports to the Production Manager. So far no
plant operates at its full capacity. Production is done only to meet the sales orders.
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The raw materials used for its production are benzene, chlorine, specially denatured ethyl
alcohol and sodium hydroxide.
The steps involved in the manufacturing process of DDT are:
a) Preparation of mancozeb
b) Preparation of chloral alcoholate
c) Preparation of chloral from chloral alcoholate
d) Condensation of mancozeb and chloral
e) Washing, distillation of mancozeb and casting DDT.
DDT is produced by the condensation of monochloro benzene (obtained from chlorine and
benzene) with chloral (obtained from chlorine and alcohol) in the presence of oleum.
The reactions are complex and the chemical used are most corrosive ones. Therefore the
manufacturing processes are highly sophisticated and equipments used are most modern
and are of special material construction.
Technical DDT is further processed into water dispersible powder (WP) by particle size
reduction after mixing with inert like china clay and wetting and dispersing agents. It is
this formulation that is used in the malaria eradication programme of NMEP.
The technical plant in Udyogamandal unit has a capacity of 1344 TPA of DDT (technical)
and 2688 TPA for DDT WDT. DDT is not used in agriculture and is used extensively for
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the control of malaria and kala azar diseases. DDT is marketed in the brand name HILDIT.
DDT is now only sold for controlling vector born diseases.
B) DICOFOL
Manufacturing process:
Dicofol is produced by the chlorination of DDE followed by hydrolysis of the chloro
product. The technical product is formulated as 18.5% EC for use in agriculture. Dicofol
is also active in the protection of many fruits and vegetables from all types of mites
species. The plant has a capacity of 150 TPA for Dicofol (technical) and 600 KL per
annum for EC formulations. Both the technical and formulation plants are based on the
technology developed, scaled up and optimized by the companys in house Research and
development.
C) MANCOZEB
Mancozeb is a coordination complex of manganese ethuylenebis dithiocarbonate. It is a
protective leaf fungicide used for the control of a broad range of plant diseases and also
for seed treatment. Being an environment friendly fungicide, it is effective against almost
all types of fungi. Mancozeb is expected to have excellent market potential in both
domestic and international circuits.
Manufacturing process:
Mancozeb is manufactured from carbon disulfide, ethylene diamine, manganese and zinc
salts. Initially the plant capacity is 1000 TPA for Mancozeb (technical) and 1800 TPA for
formulation with provision for expansion at a later stage. The plant is based on the in
house technology of HIL by the Research and Development division.
WATER TREATMENT PLANT
The company has a water treatment plant 4 kms away from the company. Water is taken
from the river Periyar and is processed and used for the production process. Water
treatment plant has 20 staffs directly recruited by the company.
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TREATMENT PROCESS:
Water from the river is pumped to the settlings tank and the clarifier settling process is
done. Certain chemicals like alum, lime and chlorine is added and the water is used.
Settled water is pumped to another tank and is used to prepare steam in boilers and is
again pumped to the company through underground pipes warehouses.
The company has 3 warehouses. DDT and Dicofol is stored in a single warehouse,
Mancozeb is stored in a separate warehouse. DDT and Mancozeb is stored in bags while
Dicofol is stored in drums.
BOILER HOUSE
The pumped water from the water treatment plant is stored in a tank and then into a boiler
and is turned into steam in the boiler house. For each production process different pressure
is needed, so the pressure needs to be adjusted. Steam produced in the boiler house is used
for every heating process in the production of various products.
DUTIES & RESPONSIBILITIES OF PRODUCTION DEPARTMENT:
A) DEPUTY PRODUCTION MANAGER
a) Deputy production manager handles duty in the general shift.
b) As plant manager for specific plants such as DDT and DICOFOL plants, Mancozeb. He
is responsible for effective and efficient operation of these plants.
c) He is responsible for effective and efficient operation of liquid filling plant and water
treatment plant.
d) He has to give the list of required raw materials so as to ensure uninterrupted production
of concerned plants.
e) He has to ensure the quality of finished products.
f) He has to monitor the raw materials, stocks and finished products stocks on daily basis
g) He is responsible for the unit operation and unit process of concerned plants
h) Responsible for safe operation of plants.
i) Achieving prescribed efficiencies and attaining target of production under his sections.
j) Discipline and attendance of employees under his charge
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k) For all other duties that may be assigned to him from time to time by any of his superior
officers
l) Arranging contract works required for concerned plants
m) Other miscellaneous jobs assigned from time to time.
ASSISTANT
ENGINEER(CHEMICAL)
OR
SHIFT
PRODUCTION
SUPERVISOR
a) Responsible for floor supervision of a specific plant in shift
b) Manpower allocation for unit operations and unit process of their concerned plants
c) Trouble shooting of various operations and their verification
d) Individual attention of plant and machinery
e) Supervision of unit operation and unit processes
f) Responsible for the performance and efficiency of employees under his charge
g) Obtaining targets of works laid down for his section
MANGALAM COLLEGE OF ENGINEERING
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a) Preparation of daily production and stock statement of all the raw materials, packing
materials and finished products
b) Preparation of monthly production reports and monthly stock statement and all the raw
materials, packing materials, work in progress, intermediate products, by products and
finished goods
c) Calculation of raw materials efficiency and raw materials requirements for each
products, month wise and annually
d) Collection of completed long sheets from each unit of various plants
e) Budget estimate preparation and revised estimate preparation of physical stock,
verification of raw materials, finished goods, work in progress etc
f) Preparation of details for monthly report part A and part B
g) Other miscellaneous jobs if any
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ENGINEERIG DEPARTMENT
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GENERAL MANAGER
Dy . general manager
Dy.engg.Managers
Dy.General Manager
Civil engineer
Senior mechanical
engineer
senior electrical engineer
senior instrumental
engineer
Mechanical engineer
supervisor
Leadman (forman)
Grade I, II Assistant&
helpers
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ENGINEERING DEPARTMENT
The Engineering Department of HIL is headed by the Engineering Manager who is assisted
by Deputy Engineering Managers. The Deputy Engineering Managers consist of the
Mechanical Deputy Engineering Manager, Electrical
Instrumental Deputy Engineering Manager and the Civil Engineering Deputy Manager.
Each deputy managers are assisted by almost 15-20 workers which include the blacksmith,
boiler, welder, fitter, assistants, electrical suppliers, masons, draftsman and helpers.
Mechanical Engineering section looks into the problems related to the working of
machines and instruments. Mechanical engineering works in the company from different
plants and is done in the mechanical maintenance system.
Electrical Engineering Department looks after all the electrical and instrumentation works
of the company. Civil Engineering section works out the infrastructure and maintenance of
construction of plants and other buildings in the company. Each plant has a workshop for
the engineering works guided by a senior engineer.
DUTIES AND RESPONSIBILITIES
The engineering department functions under the engineering manager as H.O.D. There are
four levels of subordinate officers functioning under him.
They are as follows:
Deputy Engineering Manager
Senior Engineer
Engineer
Assistant Engineer
Supervisor
Deputy Engineering Manager
1) Responsible for all works of plants and machinery in his scope
2) Total administration of the section of the engineering department
3) Inspection of materials and spares received at stores
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Senior Engineer
1) Responsible for all works plant in his scope
2) Performance testing of machinery and equipments
3) Supervision of contract work
4) Arrangement of spares and materials
Engineer
1) Responsible for all works in his scope
2) Performance testing of equipments
3) Procurement of spares and materials
4) Supervision of contract works
Assistant Engineer
1) Assisting his immediate supervisor for all works
2) Continuous inspection and giving guidance to workmen
3) Making arrangements to get spares, materials from stores
4) Trial taking to pay inspection of machinery instrument at site
Supervisor
1) Responsible for all work entrusted to him
2) Continuous supervision of workmen and proper guidance
3) Assisting the superior
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UNIT HEAD
Dy engineering manager
Fire officer
Firemen
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Unit head
Quality control
supervisor
Quality control
supervisor
Analysis Grade I, II
Lab Attendant
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This department is headed by the Quality Control Officer under him there is a quality
control supervisor assisted by 2 analysts, a lab assistant and a helper.
The duty of this department is to ensure quality of products at every level of the process
according to the standard norms. Samples of raw materials are tested before using them in
plants. Samples of process in progress products are taken after each process is tested. The
process samples should keep the exact process and are tested for quality. If any process
samples are not up to quality it will be corrected in the next stage of process. If all the
process samples keep the exact quality then the final products will also be of exact quality.
The final products are also checked for quality. Then only they will be ready for packing.
Some of the quality control policies adopted by HIL are as follows:
The main aim of the quality control department is to ensure the quality of the products at
every level of process according to the standard norms. The samples of raw materials are
tested before being used in plants. Samples are taken at each stage of production and are
tested to ensure quality. The final products are also checked for quality before the packing
is done.
The quality policies of HIL are as follows:
1) HIL Udyogamandal is committed to provide quality pesticides that ensures total
customer satisfaction
2) To meet its commitment, they adhere to the quality standards at all stages of operation
3) They continually improves the systems and processes
4) They deliver products on time
5) Ensures productivity, safety and environmental performance.
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Quality control supervisor assists the quality control department head in the above works
coordinating the quality analysis of products by analysis.
The quality control department has a health and safety policy that is followed in HIL:
1) Protect employees by imparting timing and providing personal protective equipment
wherever necessary.
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Development chemist
Laboratory Assistant
Helpers
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Facilities in the department includes laboratories for pesticides and residual analysis for
pesticide, quality control laboratory which checks the quality of raw materials,
intermediates and final products and a library stocked extensively with books from all
over the world covering all aspects of the industry.
The R&D unit in Udyogamandal concentrates on development of formulation
technologies. Formulations developed in the laboratories undergo a pilot test, positive
outcome of which leads to more extensive testing. Formulations testing positive are
approved for production. The department also undertakes troubleshooting operations in
the production plants and monitoring the soil, air and water of surrounding areas
continuously.
Almost all the new formulations marketed by the company are based on the process know
how developed by HIL itself. The R&D department had developed indigenous technology
for the Pesticides, Carboxin, Mancozeb and Dicofol which replaces carbon tetrachloride,
an ozone depleting substance with ethylene dichloride which is accepted by the UN.
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CHAPTER 8
SWOT ANALYSIS
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8.1 STRENGTHS
1.
2.
3.
Advantage of being backed by the govt. of India, in terms of funds and operations.
4.
5.
6.
Work force of HIL Udyogamandal is very highly experienced and possesses technical
knowhow of doing things. Most of the employees are from nearby places. HIL has an
enviable track record of producing the required amount of DDT for the insecticide
eradication program which was put forward by the government also because of the
peculiar nature of products like DDT, its production by private parties is banned by the
government. The easy availability of raw materials from nearby factories like TCC, FACT
etc. reduces the transportation cost.
8.2 WEAKNESS
1.
Lack of automation
2.
3.
4.
decline in workforce.
Being a public sector firm, this unit has got various limitations. Because of the peculiar
nature of the products produced by the firm, there is no marketing department. The sales are
done through the various regional sales offices according to the instructions from the head
office. None of the products of the company are automated beyond an extent.
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8.3 OPPORTUNITIES
1.
2.
3.
4.
5.
The opportunities in front of HIL are many. The pest born diseases are still very much
prevalent in many parts of and Africa. Products can be exported to all these foreign
markets if the government can give more funding to the company. The opportunity for HIL
can also be explored by thinking about product diversification.
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8.4 THREATS
1.
2.
The company has to strictly follow the standards prescribed by the statutory
governmental agencies like national pollution control board and Kerala State Pollution
Control Board.
3.
4.
Although the company is protected from government regulations, it is going through a lot of
protests due to the adverse impact created by its products. Various international societies
pointed HIL as the main culprit for the environmental degradation that has happened in this
vicinity. Endosulfan, which was one of the main products of the company is a highly toxic
substance to living creatures and has left an adverse impact on the people and the
surroundings nearby. It has the ability to remain in the environment without degradation for
a long period of time. Moreover, the waste management of the company is not much
effective
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CHAPTER 9
FINDINGS SUGGESTIONS
&
CONCLUSION
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9.1 FINDINGS
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9.2 SUGGESTIONS
1) The company should diversify its operations in to other related areas
HIL has an experience of over 50 years in the chemical industry field. With ample support
from the government, HIL should think about shifting its operations to other related
products (eco-friendly) which has no harmful effects on the environment.
2) Increase investment in human resources
As the company was started way back in the 1950s, a lot of workers have retired and a lot
are nearing retirement. So the company must think about investing in their human
resources and hence recruit new employees to the firm
3) More efforts should be made to get big international orders
The company should be more active so as to get international orders for their products and
thus explore foreign markets. International sales can increase profits.
4) Increase investments in research and development so as to produce eco friendly
products
The companys reputation has been seriously affected with the recent endosulfan ban and
issues relating to it. HIL should think about producing products that are more eco friendly
so that they can earn peoples support and faith and also help to create a pollution free
environment
5) Make people more aware about the benefits
HIL being a public sector company gives lot of benefits for all its employees. Hence, the
employees of HIL should be made aware of such benefits they can avail while working in
HIL.
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9.3 CONCLUSION
Hindustan Insecticide Limited is one of the leading pesticide manufacturing companies in
India and is of national importance. Highly competent research and development
department in the company and use of latest and innovative technologies has enabled it to
become a leader in the industry. Entrance of multinational companies has not affected the
companys leadership in the market share. At the same time HIL is adamant about
fulfilling its social responsibilities as well. The atmosphere maintained at the work place is
highly satisfying for the employees. However, being a public sector enterprise, survival
has become difficult in the face of privatization. Continuous effort of the management and
support of government bodies is essential to improve the standards of the company.
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BIBLIOGRAPHY
Page 97
BIBLIOGRAPHY
REFERANCES
1. K. Aswathappa, Human Resource Management Text & Cases, Tata McGraw Hill.
3. Kotler Philip & Keller Kevin, Marketing Management, Pearson Education, India.
WEBSITE
www.hil.gov.in
www.Chemicals.com
www.researchandmarket.com
www.chemfabalkalis.com
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